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IDBI Capital IPO Review

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Incorporated in 1993, IDBI Capital is a Mumbai based stockbroking company. The company is a part of IDBI group and has been in the broking business for over 25 years providing trading and financial services to customers in India. It provides a range of services including stock broking, research advisory and mutual fund services to its retail and institutional customers.

IDBI Capital provides both, online and offline trading services. For online trading, the company offers free trading platforms across desktop, mobile, and web. Customers also have the option to trade by visiting their branch or place orders using call & trade facility as per their convenience.

Key Facts About IDBI Capital

25+ years of experience in the stockbroking industry
Strong research services
19 branches in 14 cities across India
3-in-1 account facility
Mobile, web and desktop trading platforms
Depository services from NSDL and CDSL
Instant paperless account opening process

Initial Public Offer (IPO)

An Initial Public Offer (IPO) is the process for offering shares by a private company to the public for the first time and convert itself into a public company. IPOs are issued by companies to meet several objectives like-

Raise funds for its expansion plans
Raise funds to repay existing debts
Finance general corporate expenses
Selling shares of existing shareholders
List company on the stock exchanges

IPOs are of 2 types- book building and fixed price IPOs- based on the pricing of the issue. In a book building IPO, the company sets a price range per share and investors are asked to place bids. In a fixed price IPO, the price per share is determined by the company.

All types of investors can apply in an IPO. There are 3 categories of investors- QIB, NII, and RII. Each investor category has a fixed quota. The quota for retail investors is 35%. In case of oversubscription of an issue, the allottees are selected by lottery.

Mainline companies are listed on both NSE and BSE. SMEs are listed on NSE Emerge or BSE SME as per the choice by the company. The allotted shares are eligible for trading (buying and selling) from the listing day.

IDBI Capital Customers- Apply in an IPO

IDBI Capital offer IPO application services. Besides the application services, it also offers IPO research services wherein it provides in-depth information on the upcoming IPOs.

IDBI Capital customers can use their demat account and apply for an IPO using the net banking facility of IDBI bank. This way the allotted shares will be credited to their IDBI Capital demat account.

Steps to apply in an IPO from idbidirect

Login into your trading account
Click on IPO Menu to find the list of active IPOs
Choose the IPO you want to apply from the list of available IPOs.
Choose the Demat account number and status.
Enter IPO bid details like quantity (lot size) and price under Option I.
To place multiple bids, enter the above details in Option II and Option III.
Click on submit.

Steps to Apply in an IPO using net banking ASBA

Log in to your bank's net-banking account.
You may have to register as an IPO applicant for the first time.
Visit IPO section of the website and Select the IPO you desire to apply.
On the IPO page, enter the bidding details like price, number of lots etc.
Confirm and submit the application.

In the ASBA facility, the application amount is blocked until the allocation of shares is complete. The money is released in case the shares are not allotted.

Frequently Asked Questions

1. I have an account with IDBI Capital. Can I apply in an IPO?

Yes, you can apply for IPO with IDBI Capital.

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2. How do I sell IPO Shares with IDBI Capital?

You could sell the allocated IPO stocks, the same way you sell any other shares in normal trading with IDBI Capital. You could do that once the shares are credited in your IDBI Capital Demat Account and the company is listed on the stock exchange.

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3. How much fee do I have to pay to apply IPO online with IDBI Capital?

IDBI Capital or the banks don't charge any fee for applying in the IPO.

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4. Can I apply in IPO's using IDBI Capital Mobile Trading App?

Yes, you can apply for an IPO using IDBIdirect Mobile App.

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5. Does IDBI Capital provide research reports about IPO?

Yes, IDBI Capital offers in-depth research reports on IPO's to its Clients.

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